Joint Statement Between the United States of America and the Republic of the Philippines

President George W. Bush today welcomed President Gloria
Macapagal-Arroyo to the White House on the occasion of her State visit
to Washington. The two leaders discussed the full range of global and
bilateral issues and reaffirmed the depth and breadth of ties between
the United States and the Republic of the Philippines. The Presidents
agreed that relations are deeper and warmer today than at any time in
recent history and noted that those ties are rooted in shared history,
shared values, and a common interest in global peace and prosperity.
President Bush and President Macapagal-Arroyo paid tribute to a
revitalized and maturing bilateral alliance and pledged to strengthen
the partnership further in the years ahead.

The two leaders noted with satisfaction that the U.S.-Philippine
alliance continues to play a vital role in ensuring mutual security, as
it has since the signing of the U.S.-Philippine Mutual Defense Treaty
over 50 years ago. In recognition of this proud history and continued
partnership, the President announced his intention to designate the
Philippines as a Major Non NATO Ally (MNNA). This step will allow the
two countries to work together on military research and development and
give the Philippines greater access to American defense equipment and
supplies. President Bush thanked President Macapagal-Arroyo for her
strong and unequivocal support in the Iraq campaign and expressed
appreciation for the Philippine government's plans to deploy
peacekeeping and medical personnel to assist in Iraq's reconstruction.
The two Presidents reaffirmed their shared commitment to a free Iraq at
peace with its neighbors. The two leaders also agreed that North
Korea's nuclear weapons program is unacceptable and stressed that North
Korea's relations with the Asia-Pacific region hinge on the verifiable
and irreversible elimination of nuclear weapons capability.

President Macapagal-Arroyo expressed the view that the world had
changed on September 11, 2001 and that conflict in Iraq had been
another milestone in the war on terror. She noted that across Asia,
there is a growing capability and readiness to cooperate on maintaining
peace and stability in this new environment, and emphasized that the
United States' leadership and strategic presence in the region are
essential for the continuation of this positive trend. President Bush
welcomed this perspective and reiterated that Asia remains a major
focus of U.S. foreign policy.

President Bush praised President Macapagal-Arroyo's leadership and
strength in confronting terrorism in the Philippines and beyond and
reaffirmed the U.S. commitment to support Philippine efforts to defeat
terror in all its forms. The two leaders reviewed recent progress in
the war on terror but agreed that this effort is far from over, as
demonstrated by the May 12 terrorist attack in Riyadh, in which both
American and Philippine citizens were killed and wounded. President
Arroyo welcomed the additional counterterrorism security assistance for
the Philippines in the fiscal year 2003 supplemental budget. President
Bush emphasized that the United States would continue to provide
significant security assistance, training, equipment, and law
enforcement assistance to support the Philippines in the war on terror,
as appropriate.

Recalling last year's highly successful deployment of U.S. troops
to the southern Philippines, the two leaders noted with satisfaction
that the terrorist Abu Sayyaf Group (ASG) had been driven substantially
from the island of Basilan, enabling the restoration of peace and
order. The two Presidents reaffirmed their commitment to destroy the
ASG once and for all. Toward that end, President Bush and President
Macapagal-Arroyo agreed to hold another joint military activity in the
near term, in which the United States will provide support to ongoing
Armed Forces of the Philippines-led operations against the ASG.

The two leaders agreed on the need for a comprehensive approach to
defeating terrorism in Southeast Asia, recognizing that terrorism knows
no borders. The Presidents agreed on the need for efforts to alleviate
poverty and other socio-economic grievances which can create conditions
that can be exploited by terrorists. President Arroyo expressed
appreciation for increased U.S. economic and development assistance to
the southern Philippines, which reinforces the Philippine Government's
own efforts to heal divisions in Philippine society. To advance this
agenda, President Bush informed President Macapagal-Arroyo that the
United States will train and equip a Philippine engineering unit
capable of performing civic action and humanitarian projects in
conflict zones.

President Bush condemned recent terrorist acts in the southern
Philippines. President Arroyo appreciated the economic assistance
recently allocated by the United States Congress to support peace in
Mindanao. President Bush stated that the United States stands ready to
provide diplomatic and financial support to a renewed peace process
with the Moro Islamic Liberation Front (MILF), provided that the MILF
renounced terror.

The two Presidents agreed that the U.S.-Philippine security
partnership has never been healthier and emphasized the importance of
U.S. support for continuing efforts to improve the capabilities of the
Armed Forces of the Philippines (AFP). Toward that end, the two
Presidents agreed to launch a comprehensive review of Philippine
security needs and how best the United States can support President
Macapagal-Arroyo's plans to modernize and reform the AFP. President
Bush committed to help address the AFP's most pressing needs,
particularly in the area of mobility, by providing helicopters and
spare parts. President Macapagal-Arroyo thanked President Bush for his
promise of assistance and pledged her government's full support for,
and participation in, the more comprehensive review.

The two Presidents expressed great pride in the robust economic and
trade ties that bind the United States and the Philippines, as
evidenced by annual bilateral trade exceeding $18 billion and
cumulative direct private investment of $3.5 billion. The leaders
reviewed progress in implementing President Bush's Enterprise for ASEAN
Initiative, which is aimed at generating sustained economic growth in
Southeast Asia. They welcomed the revival of the bilateral Trade and
Investment Framework Agreement and agreed to resolve issues identified
in its Trade and Investment Council consultations. President Arroyo
welcomed the U.S. decision to provide tariff-free Generalized System of
Preferences (GSP) benefits to specific products requested by the
Philippines and the offer of additional technical and capacity building
assistance on the protection of intellectual property rights.

President Bush commended President Macapagal-Arroyo for her
steadfast leadership in pursuing needed economic reforms in the
Philippines, noting in particular her "Strong Republic" agenda aimed at
rooting out corruption, expanding economic opportunity, and alleviating
poverty. President Bush welcomed President Arroyo's determination to
pursue reforms in revenue collection, energy privatization, and
intellectual property rights protection. They further noted their
shared hope that current and continuing reforms will strengthen the
Philippines' eligibility for participation in the President's
Millennium Challenge Account (MCA) in the future.

The two Presidents highlighted the remarkable contributions of
Filipinos and Filipino-Americans to American economic life.
Recognizing the important role that the over 7 million overseas
Filipino workers play in the Philippine and global economies, President
Bush announced that the United States is launching a project to
facilitate the flow of remittances from Filipino workers around the
world back to the Philippines. The two leaders agreed that this
project would improve the lives of millions of Filipinos by lowering
the costs of remittance transactions and making it easier for funds to
flow to the Philippines from the United States and around the world.

The two Presidents reviewed with pride the contributions made by
Philippine World War II veterans who gave so much in defense of
freedom. President Bush announced his intention to support legislation
extending new benefits for Commonwealth Army veterans and guerrillas
who lawfully reside in the United States. He also announced continuing
efforts to improve medical care for Filipinos veterans in the
Philippines by providing medical equipment to the Veterans Memorial
Medical Center in Quezon City in the 2004 fiscal year.

Presidents Bush and Macapagal-Arroyo looked forward to the May 20
signing by Secretaries Powell and Ople of agreements on assistance for
Mindanao, law enforcement cooperation, and science and technology
cooperation, noting that cooperation in these three areas is a priority
for both countries.

President Bush was pleased to accept President Macapagal-Arroyo's
invitation to pay a reciprocal visit to the Philippines when he travels
to Southeast Asia for APEC in 2003. The two leaders agreed that to
maintain momentum in the bilateral relationship, other senior U.S.
officials will travel to Manila in the coming months, beginning soon
with Secretary of Energy Abraham and continuing thereafter with senior
officials from the Department of Treasury and the Agency for
International Development (AID).